Shares of Devyani International Ltd soared 3% on Tuesday, 24 June, after the company signed a share subscription agreement and shareholders agreement with Sky Gate Hospitality to acquire an 80.72% stake.

Devyani International previously announced that it had bought an 80.72% ownership in Sky Gate Hospitality, along with its subsidiaries. Devyani International proposed issuing and allotting 2,37,18,413 preferential shares with a face value of Rs 1 each to cover the acquisition amount.

According to the petition, Sky Gate, along with its subsidiaries Blackvelvet Hospitality, Say Chefs Eatery, and Peanutbutter and Jelly, became Devyani International subsidiaries upon the acquisition. 

Earlier on Monday, 23 June 2025, the firm signed a share subscription, purchase, and shareholder agreement with Sky Gate and its promoters/founders to buy additional equity stakes in Sky Gate in one or more tranches. The acquisition costs up to Rs 106.25 crore, according to the document.

Currently, the business owns 80.72% of Sky Gate.  Following the proposed transaction, the company’s equity position in Sky Gate would increase to 86.13% (completely diluted).

Devyani International Limited (DIL), founded in 1991, is one of India’s largest and fastest expanding chain quick service restaurant (QSR) operators.

As of 31 December 2024, the company operates over 2,030 stores under various brands in over 280 locations spanning India, Thailand, Nigeria, and Nepal.  DIL is Yum Brands’ largest franchisee in India, running KFC and Pizza Hut restaurants, as well as the country’s official franchisee for Costa Coffee cafés.

At 12:46 pm, the shares of Devyani International were trading 0.73% higher at Rs 167.85 on NSE.

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